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Crompton reported steady revenue growth of 11.2% YoY

ICICIdirect Research 07 Aug 2026 DISCLAIMER

News: Crompton reported steady revenue growth of 11.2% YoY (-3% QoQ) to ₹2022 crore wherein double digit growth was witnessed across segments. Gross margins came in at ~31.2% down 91 bps YoY and 36 bps QoQ owing to elevated input cost. Management took calibrated price hike in single digit to low double digit to pass on the increased cost. EBITDA came in at ₹224.5 crore with EBITDA margins of 10% up 45 bps YoY owing to operating leverage however declined by 181 bps sequentially. Adj. PAT came in at ₹140.5 crore up 14.8% YoY while down 18.1% due to seasonality.

View: Overall, revenue growth remained modest during the quarter; however, management indicated that it lost nearly ₹200 crore of revenue due to supply constraints, primarily in the fans & B2B lighting segment. Excluding this impact, revenue growth would have exceeded 20%, reflecting healthy underlying demand. Other key segments, including BLDC fans, pumps, domestic appliances, kitchen appliances, and the lighting business, delivered steady growth during the quarter. Margins moderated due to elevated input costs, although the company implemented price hikes to partially offset the impact. Going forward, margins are expected to recover gradually, supported by additional price increases and an easing of geopolitical uncertainties, which should help normalise input costs. On consol basis, the company is now consistently delivering double digit revenue growth and margin.

Impact: Positive

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